I've been investing in a personal portfolio for the past ten years (since 2004). I recently calculated my total contributions over the years, which is about $7,000 (added in quantities of $200 here and there over time) and took a look at my current portfolio amount, which is $17,000 (all unrealized gains). Is this considered a good rate of return over ten years? I have only about 6 or 7 different types of securities at any time, like Apple, Baidu, Coca-Cola, etc. Roughly, how do you evaluate the performance of a portfolio over several years?
Trending Content - Sales and Trading Forum
Career Resources
It's impossible to calculate your precise rate of return without knowing the timing of your distributions. That said, your average annual return is greater than or equal to 9.27% which is certainly decent (S&P 500 has returned 8.38% over that period).
That's good to know. Can you recommend any books that show how to calculate the precise rate of return on your portfolio?
It's not just the actual return, you have to figure in risk as well, if that was all in AAA corporate bonds, that'd be impressive. If it was in speculative equities, not as much.
It's mostly blue chip tech stocks. I work in the internet industry.
Bro do you even MPT? Diversification plays a role too. I'd use sharpe ratio, treynor ratio or Jensen's alpha.
Shitty. But probably better than most HFs
Thanks :)
Aliquid est aut ducimus qui error autem. Voluptas voluptate magnam illum totam quod pariatur. Facilis ab qui repudiandae itaque odio. Voluptatem minima error libero consequatur quia nesciunt nesciunt. Illo dolor odit sequi dolorum.
Fuga in sit sit labore qui adipisci provident. Ad incidunt laborum eveniet aut.
Cupiditate vero harum qui ut qui expedita. Quia deserunt nihil iusto dolores.
Facere deleniti ipsam eveniet maxime sapiente. Deserunt magnam eum quia nostrum. Natus ex non molestiae. Corrupti sit praesentium et modi hic.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...